DRI Healthcare Trust (DHT-UN) investor relations material

Deal rationale and strategic fit

• Acquisition of royalty rights in tavapadon, a differentiated, once-daily oral therapy for Parkinson's disease with a novel mechanism and positive Phase 3 results, aligns with the goal of building a portfolio of high-quality, cash-generative assets and addresses a large unmet need.

• The deal is transformational, supporting significant growth inflection, enabling future royalty acquisitions, and enhancing portfolio balance and strategic flexibility.

• Expands exposure to neurology and complements a strategy focused on predictable, compounding cash flows.

• The transaction supports proactive portfolio shaping and positions the company for long-term growth and value creation for unitholders.

Financial terms and conditions

• $316 million upfront payment, contingent on FDA approval of tavapadon, with four annual fixed payments of $23.4375 million each, tiered royalties on U.S. net sales, and cumulative sales milestones.

• Aggregate receipts are capped at $437.5 million, with all cash receipts, including fixed payments and milestones, counting toward the cap.

• Royalties are tiered, ranging from mid-single to low-double digits on U.S. net sales, paid quarterly.

• Fixed payments occur on each of the four anniversaries of regulatory approval, independent of product performance.

Synergies and expected cost savings

• Predictable near- to medium-term cash flows enable reinvestment into new royalty acquisitions and support growth aspirations.

• The transaction is highly cash generative, freeing up financing capacity for future deals and supporting execution of additional pipeline opportunities.

• Cash flow characteristics complement longer-dated royalties in the portfolio.

• Expected to help achieve 2030 Adjusted EBITDA goals without further acquisitions, while maintaining capacity for future growth.